GENERAL COMMENTS:
It was a slow trading day throughout the livestock industry as all three markets closed lower, seemingly waiting for something fundamentally to develop. Thursday will be a big day for the livestock complex with the morning export data, morning WASDE report and afternoon carcass data -- stay tuned. Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $0.92 with a weighted average price of $66.37 on 3,920 head. March corn is down 4 1/2 cents per bushel and March soybean meal is down $7.60. The Dow Jones Industrial Average is up 148.79 points.
LIVE CATTLE:
The live cattle complex ran sharply higher through Tuesday's market, but without the support of higher cash cattle trade, the market couldn't accomplish much -- technically speaking -- throughout Wednesday's trade. It was positive, however, that boxed beef prices closed higher, which should keep packers engaged in this week's cash market. No cash cattle trade developed throughout the day with a lone bid of $280 offered in Nebraska but no feedlots elected to sell cattle. Asking prices are noted at $182-plus in the South and remain elusive in the North. February live cattle closed $0.77 lower at $182.22, April live cattle closed $1.27 lower at $184.80 and June live cattle closed $0.92 lower at $182.20.
Wednesday's slaughter is estimated at 126,000 head -- 1,000 head less than a week ago and 3,000 head more than a year ago.
Boxed beef prices closed higher: Choice up $0.91 ($294.98) and select up $0.82 ($285.42) with a movement of 154 loads (102.68 loads of choice, 28.98 loads of select, 8.85 loads of trim and 13.17 loads of ground beef).
THURSDAY'S CATTLE CALL: Steady to somewhat higher. Packers are aware of just how current showlists are, so they won't willingly give the cash market more money than necessary. Prices could, however, trade higher as they need to keep up with beef demand and ensure there is enough product to sell.
FEEDER CATTLE:
The feeder cattle complex grew leery of trading excitedly, and by Wednesday's end, the market adopted the same attitude for the live cattle complex. March feeders closed $1.12 lower at $245.55, April feeders closed $0.50 lower at $251.20 and May feeders closed $0.42 lower at $255.90. Likely, the market could again trade higher later this week as feeder cattle sales remain strong in the countryside and given the likelihood that fed cash cattle prices trade at least steady. At Kingsville Livestock Auction in Kingsville, Missouri, when compared to last week, the majority of weight groups of steers and heifers sold $5 to $10 higher but there were some instances of spots up to $15 higher. Supply was heavy with nice weather and high prices encouraging producers to move cattle. Feeder cattle supply over 600 pounds was 68%. The CME feeder cattle index for Feb. 6: Up $1.04, $240.62.
LEAN HOGS:
The lean hog market closed mixed with most of the summer 2024 contracts slightly higher but spot and deferred months closed lower. It's looking like a support plane is being established in the spot April contract at $81 as the market has closed above that price point for two days in a row now. Thursday's export and WASDE reports will both be highly sought after by hog enthusiasts as producers hope demand will increase and the market will find some stability. February lean hogs closed $0.10 lower at $73.37, April lean hogs closed $0.15 lower at $81.10 and June lean hogs closed $0.37 higher at $95.57. Wednesday's slaughter is estimated at 487,000 head -- 4,000 head less than a week ago and 6,000 head more than a year ago. The CME lean hog index for Feb. 5: Up $0.30, $73.86.
THURSDAY'S HOG CALL: Steady. Packers haven't bought enough hogs for the week, which likely means that they'll need to buy more in Thursday's market.
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